COMMONFLOOR INSIGHT ON FARIDABAD &

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Introduction - NCR (National Capital Region) metropolitan region amounts for about 46,208 sq. km area accommodating over 45 million people and is ranked as ’s largest and world’s second largest urban agglomeration after New York city. The region attracts huge in-migration volume and thus, creates a pressure on the land supply which is handled by NCR Planning Board (constituted by the govt. of India by NCR Planning Board Act, 1985). This board tries to focus on the development radially outwards towards other districts in neighbouring states thus, expanding land area of the NCR belt altogether. The NCR belt is further divided into four sub-constituents: 1. Sub-Region 2. Uttar Pradesh Sub-Region 3. Rajasthan Sub-Region and 4. Delhi region with a stable government at Centre, consumer sentiments are getting positive and there is an increase in the real estate activity. Reports suggest that there was a surge of almost 50 per cent in Private Equity funds in 2014 as compared to 2013 in the realty market of Delhi-NCR. NCR is experiencing a consistent residential demand owing to exorbitant prices in the National Capital. The growth of NCR belt brings fresh development opportunities to these new sub-regions which contain huge untapped residential market potential. This report gives an overview of the three prominent markets in NCR namely Bhiwadi, Faridabad and Ghaziabad. BHIWADI (Rajasthan) Bhiwadi, in Alwar district of Rajasthan, is located in close proximity to Manesar and is an emerging industrial and real estate hub adjoining (49 km away). The area has attracted both investors and buyers alike over the last few years. Major Growth Drivers

 The area is an important emerging industrial area with industries such as steel, furnace, electronics, engineering, textiles, pharmaceuticals, printing, cables, rolling mills, food processing.  Tapukara Industrial Area, located on the Bhiwadi-Alwar Road, is one of the major attractions.  A number of SEZs are coming up in and around Bhiwadi by RIICO and DMIC.  The Union Budget 2014 further strengthened the prospects of this small town with major emphasis on the industrial corridors including Delhi- Industrial Corridor (DMIC).  Over 17,000 MNCs are expected to set their base here. Figure 1 Bhiwadi map Source: Real Insights by CommonFloor.com  Proposal to enhance connectivity with Delhi & other NCR towns.  Expected future connectivity via bullet train.  Potential to be the No. 1 Industrial Area in Northern India.  Alwar Bypass Road to be 6-lane.

Infrastructure Projects:  Connecting highways such as NH-8 (Delhi- highway) and NH-71B are an added advantage.  The proposed Neemrana Airport is also in close vicinity of Bhiwadi.

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 According to Gurgaon-Manesar 2021 Master Plan, the proposed Kundli-Manesar- (KMP) Expressway will improve connectivity here in the future.  Regional rapid transit system (RRTS) from Delhi to Alwar (180 km) is also proposed.  As for social and physical infrastructure, Bhiwadi has most of the basic amenities like piped water (no water shortage), schools, transportation, hospitals, telecom networks, banks, etc.

Affordable Prices: When compared to other areas of the NCR, the prices in Bhiwadi are still reasonable in the budget of Rs 18 lakh to Rs 50 lakh. Both, Bhiwadi and Dharuhera have emerged as credible alternative to Gurgaon in terms of affordable housing, industrial areas and real estate growth. On a long term perspective, one may expect at least 20 per cent returns year on year. But if one is looking to invest for a short period, then it is not advisable to consider it for investment.

Challenges:  Commercial real estate and quality social infrastructure including big branded shopping malls are yet to catch up.  There is lack of high income service industries such as IT/ITeS, and other such services.

To conclude, with increasing buyer interests, there has been a decent developer activity in the region offering basic amenities and facilities and, thus, bringing up the livability quotient of the area. It is a good blue collar destination and long term bet.

SWOT Analysis

Figure 2 Bhiwadi: SWOT analysis Source: Real Insights by CommonFloor.com

Residential Snapshot: CommonFloor Data As per CommonFloor data, property prices in Bhiwadi witnessed correction to the tune of 10-15 per cent in 2014 as compared to 2013. The drop in prices was the effect of the overall slowdown. The social infrastructure is also yet to develop and the liveability quotient currently is not so good. Further, maximum real estate activity was witnessed in Alwar Bypass Road, Sector 106 and Tapukara. Interestingly, as compared to previous year, there was some real estate activity seen in newer markets such as Sectors 4, 41, 69, 106, 134 and Chopanki in 2014.

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According to CommonFloor’s report titled “Real Insights 2014: Annual Realty Report,” in Bhiwadi, Alwar Bypass Road, Sector 106, Tapukara and Chopanki were the top scorers for the top 10 markets based on both new projects and units launch. There was about 20 per cent decline in the supply of ready-to-move-in properties in 2014 as against the previous year. Several residential projects launched in previous years are still under construction and slated to be completed over the next 2 years. As per data, out of the total new launches in Bhiwadi in the years 2013 and 2014, Alwar Bypass Road alone witnessed over 75 per cent residential supply. Out of this new supply, almost 50 per cent comprised of 2BHKs, followed by 23 per cent in 3BHK configurations. The price bracket for these properties was within the affordable range (less than Rs 40 lakhs). Bhiwadi vs Dharuhera: Which is better for investment? Price Bracket Gap Data suggests that Bhiwadi has multiple options in a wide price range of Rs 1,850-3,100 per sq. ft. While Dharuhera has essentially properties in the price bracket of Rs 2650 - 3,250. ROI Keeping in mind the proposed infra projects and future growth plans, one can expect decent price appreciation in Bhiwadi in a short to medium term. On the contrary, it will still take a while for development to actually become a reality in Dharuhera. Hence, if one is considering to invest here, it will take a long time to get decent returns. FARIDABAD With realistic property values, good connectivity coupled with upcoming infra upgrades, Faridabad is expected to be the next hotspot in NCR. One of the largest cities in Haryana, it is surrounded by , Gurgaon, and Delhi. It enjoys connectivity to other cities such as , Palwal and via NH-2. Greater Faridabad is a newly formed residential and industrial part of the city, and is being developed as a self-sustained sub-city, with malls, wide roads, tall buildings, commercial centres and educational institutions. There are plans to extend the to the city to ease travel between Faridabad and Delhi. Greater Faridabad (Sector 66-89) has immense potential for realty development. The average property values are in the range Figure 3 Faridabad map Source: Real Insights by CommonFloor.com of Rs 3,000-9,600 per sq. ft. When compared to Noida and Greater Noida, Greater Faridabad evolved as more affordable option with better facilities. Some of the prominent developers in the city are BPTP Group, , Ashiana Housing, SRS Group, Emerald Home Developers, to name a few. Important areas: (Greater Faridabad), Greenfield Colony, Charmwood Village, Suraj Kund.

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Infrastructure Impetus Faridabad is riding high on various infrastructure projects such as: Gurgaon-Faridabad Expressway: Limited (RInfra), part of Reliance Group, has commenced the operation of Gurgaon-Faridabad Toll Road Private Limited. The four laning of Gurgaon - Faridabad and two laning of - road have been completed and toll collections have been started. Faridabad-Noida-Ghaziabad: The construction of FNG Corridor is still under development while new proposals for adding construction of underpass costing Rs 30 crore on the corridor have been submitted to IIT-D for approval. Expressway Widening of Mathura Road into six lane: The project has been experiencing severe delays due to the environmental issues related to the tree felling in according to which the National Highway Authority of India has paid about Rs 1.2 crore to translocate around 1,200 trees. Expansion of Delhi Metro Rail: Now connected up to the tip of the Faridabad city till Badarpur Metro Station, further under the DMRC phase III this line is to be extended up to the central location in the City till YMCA chowk, Old Faridabad and targeted for completion by May 2015. Badarpur Flyover (Delhi-Faridabad Skyway): Delhi-Faridabad Elevated Highway has been inaugurated successfully by the then Chief Minister Smt. Shiela Dikshit in November, 2010. Increasing Commercial Growth: Faridabad has been recently witnessing a growth of commercial nodes attracting new office spaces especially at Neharpar and New Faridabad areas. Additionally, being a major industrial hub in the NCR region, the area witnesses a good amount of investor interest followed by home-buyers who predominantly belong to the workforce of these industrial setups. Challenges:  Faridabad has been consistently one of the top cities in India recording high crime rates.  The city falls in high flood prone zone repeatedly experiencing floods from river .

SWOT Analysis

Figure 4 Faridabad SWOT analysis Source: Real Insights by CommonFloor.com

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Faridabad: Residential Snapshot  According to CommonFloor’s report titled “Real Insights 2014: Annual Realty Report,” Faridabad witnessed only 5 per cent of the total new launch supply in entire NCR in 2014. However, trends indicate that there was an increased interest by buyers as property prices were relatively affordable in comparison to other cities in NCR.  As per same report, NCR market saw decent absorption of units that were launched during 2014. Faridabad tops the list with 54 per cent absorption, followed by Noida, Ghaziabad and Greater Noida. This shows the increased interest of buyers in Faridabad in lieu of the proposed infrastructure initiatives by the government.  The top 3 micro markets, based on availability, of 2014 were Sector - 82, Palwal and Ballabgarh.  If we compare price trends in 2014 as against 2013 in Faridabad, there has been a decline of almost 9 per cent in property prices in certain localities.  As per data, mid-segment project launches dominated the region in 2014 and the prominent micro-market that saw maximum new launches was Sector 82.  Interestingly, 3BHKs dominated the BHK configuration here with about 43 per cent of the total supply. However, there was a significant competition from 2BHK configurations especially in Palwal, followed by Sector 70 and Sector 49 which together amounted to about 30 per cent of the total supply in this category. GHAZIABAD Ghaziabad is referred as the “Gateway to Uttar Pradesh”. It is the administrative headquarters of Ghaziabad District with well-planned industrial sector and good connectivity through road and rail network. It’s also a centre for primary commercial activities and is considered the educational hub of Western Uttar Pradesh. Being a major rail junction of North India, there is rise in the residential development of the region with major preference for high- rise apartments. Besides development of different sectors, Ghaziabad also boasts of good connectivity with Delhi via Delhi Metro Line and NH-24 and also Noida. As a result, it became an alternate affordable destination for many professionals Figure 5 Ghaziabad map Source: Real Insights by CommonFloor.com working in Delhi and also Gurgaon where property prices were exorbitant. Infrastructure Upgrade In Ghaziabad one can see concerted effort by development authorities like GDA (Ghaziabad Development Authority), UP Awas Vikas, the municipal authorities and various private developers for infrastructure upgrade. But there is still scope for more. Challenges:

 Ghaziabad lacks a balanced physical infrastructure to cope with the pace of development it is undergoing currently. Also there are no supporting infra projects for the upcoming residential projects in the city.  The city lacks proper infrastructure to ensure safety and security especially in residential sectors.

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SWOT Analysis

Residential Snapshot  Ghaziabad residential market essentially boasted of affordable properties in earlier years. However, data suggests that in 2014 there were maximum new launches in the mid and luxury segments.  Interestingly, about 60 per cent of the new supply in NCR comprised of small-size projects that had less than 500 units each. And Ghaziabad had 63 per cent supply of small-size projects. With Modi’s ambitious vision of ‘Housing for All by 2022’, several developers have set their foot forward for launching affordable projects in major cities.

Figure 6 Ghaziabad SWOT analysis Source: Real Insights by CommonFloor.com

 Moreover, supply of small-size projects (Less than 500) was followed by mid- size (500-1000) with 22 per cent and large-size (1000 and above) with 15 per cent. Absence of large tracts of land in Ghaziabad prompted developers to launch small-size projects.  According to CommonFloor’s report titled “Real Insights 2014: Annual Realty Report, in Ghaziabad, NH-24, Raj Nagar Extension and Vasundhara are the top localities in 2014 based on the number of new launched projects. However, based on number of units launched, Krishna Vihar was also one of the top localities besides the other three.  Properties in NH-24 and Raj Nagar Extension mainly catered to the affordable segment with prices ranging between Rs 2,650 per sq. ft. to Rs 2,850 per sq. ft. amounting up to 50 per cent of the new launches in the city.  All top micro markets in Ghaziabad were seen to be dominated by 2BHK (43 per cent) followed by 3 BHK (41 per cent) configuration units.  As per data, the key trend witnessed in 2014 for plots was that most of the activity in entire NCR happened in Ghaziabad. About 25 per cent of the total new supply in this property-type was launched here, followed by Faridabad and Greater Noida.  As for absorption of new launched projects in Ghaziabad in 2014, Crossings Republik topped the list, followed by Vasundhara and Lal Kuan.

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Disclaimer: The document above is written by the Domain Research Team at Commonfloor.com, India’s fastest growing real estate website known for its unbiased prognosis in Real Estate sector.

The information provided in this report is based on CommonFloor data which is collected from various publicly known sources viz, websites, documents and maps.

It should be considered as a guideline and not in absolute certainty. While care has been taken for groundwork, no responsibility is accepted for the accuracy of whole or any part. This information is confidential and the sole property of CommonFloor.com. It should not be reproduced in any form, in part or whole, without prior permission.

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